Cost & Payback Analysis For Installing Solar Panels
There’s lots of interest in going solar in Dripping Springs, Texas, a suburb of Austin. One question we commonly receive is, “How long will it take for the solar panels to pay for themselves?” It’s such a popular question, and it’s also pretty important, so we are happy to explain the answer below.
First and foremost, Alba Energy’s solar financing options allow you to save money INSTANTLY, from the first moment your solar panel installation is turned on! Go Solar In Dripping Springs and save money from Day 1 with Alba Energy!
Solar Panel Costs & Payback In Dripping Springs
For most homeowners in Dripping Springs who finance a new solar roof, the average solar panel installation will pay for itself in 10 years. What this means is that over 10 years, the value of energy produced by a solar energy system should equal the cost to have the system installed. Payback period is also sometimes referred to as return on investment (ROI).
How did we get to the 10 year ROI figure for a home solar install in Dripping Springs? Our calculations are below.
A standard roof-mounted 13.34 kW solar energy system will produce approximately $2,500 dollars in energy each year. This assumes a $0.125/kWh value based on rates in the Pedernales Electric Coop service territory and average solar radiation levels based on a location in Austin, TX. The below results are taken from NREL PVWatts solar calculator:
Solar Costs & Rebates Explained
Using a cost of $3.07 per watt we have a gross cost of $41,001 for a 13.34 kW solar install (13,340 watts).
A 30% Federal tax credit is available for solar installs until the end of 2019. 30% of $41,001 equals $12,300, and we can deduct this from the gross cost since the tax credit is money you receive from the federal government on your income taxes. $41,001 – $12,300 = $28,701
Solar Rebates Available In Dripping Springs
Local installer Alba Energy is currently offering solar rebates and incentives for installations in Dripping Springs.
The maximum rebate available is $3,500 dollars which is based on a 10 kW system size or larger. Since this is money the solar company gives as a rebate after a solar energy system has been installed, you can also deduct it from your gross cost.
$41,001 – $12,300 – $3,500 = $25,201
So your net cost for a 13 kW solar panel installation in Dripping Springs, that is the cost after all rebates and incentives, is just $25,201 dollars.
And as we said before, the financial value of the energy produced by a 13.34 kW solar panel system in 1 year is equal to approximately $2,500 dollars.
$25,201 dollars net cost / $2,500 dollars worth of energy produced each year = 10.08 years, or 10 years until the solar panel installation pays for itself.
Related Reading: Solar Panel Installation in Dripping Springs Helps Homeowner Cuts Power Bills By 80%
Things To Note About Solar Panel Payback & ROI
Most modern solar panels are sold with a 10 – 25 year warranty, and are designed to deliver 80% of their rated power after 30 years. Research tests have proven that solar panels can last for 40 years or longer. Click to read more frequently asked questions about solar.
It is not uncommon for a home solar panel installation to deliver $50,000, $75,000, or even $100,000 in cumulative energy savings over time. For more examples, view local residential solar panel installations in Texas to see case studies of projects designed & installed by Alba Energy.
No Cash? No Problem! Alba Energy has a number of solar financing options for you. We can help you go solar and pay less for power than you currently pay each month! That is, the cost of your new power bill + the monthly solar finance cost could be less than your current power bill! It’s a no-brainer!
Want to see how much you could save with solar??
Alba Energy is proud to be one of the leading providers of solar energy in the metro Austin area, with locations across Texas. Contact our Austin solar office to receive a free analysis of how much money you could be saving with a solar panel installation! Don’t wait – Summer power bills are coming soon!